The ATO will target false clothing and laundry work related expense claims this Tax Time.

In 2018, around six million people claimed workrelated clothing and laundry expenses totalling nearly $1.5 billion.

Assistant Commissioner Karen Foat said although many Australians can claim clothing and laundry expenses, it’s unlikely that half of all taxpayers are required to wear uniforms, protective clothing or occupation-specific clothing to earn their income.

“Last year a quarter of all clothing and laundry claims were exactly at the record-keeping limit”, Ms Foat said.

“But don’t think that we won’t scrutinise a claim because we don’t require receipts”. She also said the ATO does not ignore incorrect claims “just because they are small, because small amounts add up”.

The ATO is also concerned about the number of people claiming deductions for conventional clothing, such as retail workers claiming normal clothes “because their boss told them to wear a certain colour, or items from the latest fashion clothing line”, or others claiming normal clothes because they only wear them to work.

The ATO’s sophisticated data analytics is constantly improving and can identify unusual claims by comparing taxpayer claims to others in similar occupations.

Taxpayers who can’t substantiate their claims should expect to have them refused, and may be penalised for failing to take reasonable care when submitting their tax return.

If you have any questions regarding tax returns please don’t hesitate to contact our team on (08) 9392 7600 or find out more about how we can help here.

Exciting News! Muntz Partners is Rebranding to Acclaim Accounting

We are thrilled to announce that Muntz Partners is now known as Acclaim Accounting.

This change reflects our commitment to providing you with even better services and experiences.

Stay tuned for more updates as we embark on this exciting journey together!

Note: The change took effect on May 15th 2024.